Gov't aims to curb iPhone influence

Read this whole article again very carefully. There's so much here that makes me want to find out more, or at least discover the text beneath the text. An example: although the article is merely discussing cell phones, the sources quoted are anonymous -- Mr. A and Mr. B. What's that?., We're talking about cell phones not privileged information, but sources are being protected. I'm finding myself saying "hmm..... "

I welcome any move that benefits the life of the consumer, but, IMHO, this article raises more questions than it answers. Is this simply a matter of trying to protect Japanese mobile terminal manufacturers, as the end of the article suggests? I'm not convinced. Most manufacturers are trying to get out of that business anyways, because they lose money on it. I'm going to give this another good think.......

I do welcome the flexibility and options available with carriers; however, I think the main motivation is local companies are getting killed by SoftBank because of it's forward thinking when the IPhone initially entered the Japanese markets.

They now have a loyal customer fan base and those 2-year contracts along with the constant IPhone upgrades keeps other carriers from luring customers away.

It's also just another case of Japanese companies whining like children because they came too late to the party again, so they want to play the victim and take their ball home.

Lets's be honest, it's Apple! They are not the only companies getting spanked by them.

I do hope this lower prices!

SoftBank IS a local company. And you're right, Silvafan, they are very forward-thinking. Arguably (and I could very well be wrong here), there is one local company that might take issue with this because of a longstanding virtual dominance of the market that the early iPhone offerers began to chip away at. That's why this article merits a careful re-read

This article seems to be confusing things around. Sim unlocking is a good thing though.

The irony is that Japan is a major supplier of the chips used in the Iphone and therefore, at least on some models, receives 34% of the cost of iphones sold all over the world (More then the U.S earns from it.) and the top national beneficiary of the iPhone, taking in 34 percent of the proceeds, is Japan. (The U.S., where it was designed, doesn't make much more than China, where the devices are assembled by low-paid workers.) Inequality for all movie. Therefore although the Iphone has had a big impact on Japanese cell phone brands sold in Japan, it has been beneficial for Japanese tech companies that manufacture components for it.

I would love an end to the contracts and the one-week window wiith which you can terminate without being penalized, and so forth, but it's pretty clear this is just a group of bitter Japanese company heads who are sad about their product not even making a dent in Apple sales and them having to move on to other things.

I being a foreigner is very happy to hear about this. Also they should remove machine lock, so that it can be used in any country of the world. If a consumer like me pays all the cost of machine, why not he should be allowed the property rights and freedom of usage in anywhere else in the world.. Government should also think and act on it.

When will they learn that the iPhone will either thrive or die based upon its merits... not on sales gimmicks.

kiwi07Jul. 23, 2014 - 09:06AM JST The irony is that Japan is a major supplier of the chips used in the Iphone and therefore, at least on some models, receives 34% of the cost of iphones sold all over the world (More then the U.S earns from it.) and the top national beneficiary of the iPhone, taking in 34 percent of the proceeds, is Japan. (The U.S., where it was designed, doesn't make much more than China, where the devices are assembled by low-paid workers.) Inequality for all movie. Therefore although the Iphone has had a big impact on Japanese cell phone brands sold in Japan, it has been beneficial for Japanese tech companies that manufacture components for it.

Spot on Kiwi07.

This entire move is plainly and simply to protect tier 1 electronics companies. For those unfamiliar with Japanese manufacturing it works in 4 tiers.

You have the big dogs like Panasonic or Sony who are tier 1. They put together the final product and slap the "made in Japan" sticker on it, but they don't actually make a lot of the components, in fact they mostly just make the shell.

Tier 2 companies are close suppliers, who are often wholly owned by the tier 1 company and may even be on-site. They handle the manufacturing for major and proprietary components, and normally deal almost exclusively with the tier 1 company.

Tier 3 companies are "drawings supplied" manufacturers. They get approached by the tier 2 company to make some specific part, but the profit margins are very small, so innovation is their only source of profit. These companies rework the drawing to meet specifications, but make it as resource-efficient as possible, which is where they get their profit from.

Tier 4 companies provide generic mass-produced items, often on a competitive bidding system. Generic mass-produced items doesn't imply lack of skill, just that these items can be used in many products, like those tiny metal pins that hold together almost every electronic item.

How does this relate to the article? Well, Tier 1 manufacturers (the "big dogs") don't actually produce much, and they're feeling the pinch, so they're paying the tier 2, 3 and 4 manufacturers less, which is leading to the tier 3 and 4 manufacturers to take more international business. This means that while Japan is still a world leader in manufacturing there are less and less products with "made in Japan" stamped on the side, and more and more products with invisible Japanese components.

Now anyone with half a brain would realise that this is actually GOOD! ... except for the bloated and obselete Tier 1 companies, who have stopped innovating. So you see this sort of hair-brained scheme to push consumers into buying more products with "made in Japan" stamped on them... despite the fact that this is actually worse for the Japanese economy.

Put simply, what would you rather have, 50% of a Japanese pie, or 30% of a global pie? I like global pie, but apparently Japanese politicians can't see the big picture.

this would be great news if it were ever to happen, but i doubt it. competition isn't really built into the japanese way of doing things.

Gov't aims to curb iPhone influence, why?

From the article it appears they believe Japanese companies can not compete and they want to change the rules to stop this and customer choice. Japan's cell phone net work is already "unique" as phones bought in Japan can be used no where-else and phones from other countries can not be used here. Again the consumer suffers to protect companies that are not innovative or relavent globally. With the lowering of the yen it's in danger of just making parts competing with China for business.

It's difficult to see how these measures will reduce the popularity of the iPhone. The carriers have been using the same tactics since before they offered the iPhone. I seem to remember some years ago they promised to stop the 1 Yen phone deals, but that didn't last long.

Japanese phone manufacturers need to compete in a global market, but they are unable to do so. Fiddling with the regulations in Japan won't help them gain the economies of scale they need.

Even the broadcast frequencies for Japan's FM radio stations are different, making it impossible to use transistor radios sold here abroad (although international models exist that can be used in both countries). But I've been constantly frustrated by the Galapagos mentality that pervades most electronics products here. Japanese manufacturers seem to do fine in protected home markets, but less so once the business sectors become deregulated.

but it's pretty clear this is just a group of bitter Japanese company heads who are sad about their product not even making a dent in Apple sales

no, it isn't "pretty clear" and what's more, Japanese weekly "magazines" are renowned for often fabricating "kuchikomi" articles by using anonymous quotes, outright lies and complete speculation to create attention grabbing headlines which sell the rags. The quote below, from a "freelance writer knowledgeable about cell phone rates" (lol) is a prime example:

“These moves, if implemented, will result in a complete collapse of the sales system for mobile phones as it now stands,” Kazuyasu Goto, a freelance writer who is knowledgeable about the system of cell phone rates

I'll tell you all exactly what's going on here. I've spoken with all kinds of people in the industry and it basically comes down to this - Japanese carriers are clawing onto a dying business model. Back in the day, carriers would dictate what type of hardware they'd need, and the manufacturers would make the handsets accordingly. This gave the carriers total control over not only the hardware side, but more importantly, the software side. Carriers would then "shoehorn" you into their services, as we saw with i-Mode and the like.

So, we fast forward to 2008, where Softbank took a massive gamble (they were on the brink of bankruptcy at the time) and got exclusive an exclusive 2 year deal for the iPhone. To put it simply, the iPhone has completely taken the power out of carriers' hands, as Apple is the one who dictates both software and hardware specifications. So, essentially, carriers are no longer hardware, software & service providers. They're just service providers. This is known in the industry as becoming a "dumb pipe". Mr. Son knew this was a risk, but was willing to take it.

This phenomenon is not exclusive to Japan - it's happening in most developed countries where Apple holds the monopoly. My 2 cents - get rid of the SIM locks on the iPhone! It's extremely unfair on consumers.

Japans monkeying around with cell phones began in the early 90s when they basically kept Motorola OUT & developed Japans own stupid systems that no one else used forcing us to use THEIR phones & systems only..........

I remember years ago when people would come into Japan with Blackberrys & would be able to do email etc & Japan were stuck with crappy phones that couldn't connect with anything outside Japan, this went on for 4-5 years before smart phones were eventually CRUDGINGLY let into Japan & the rest is history.

Still some BS to be worked out but at least we are headed in the right direction & J-phones are biting the dust from where they emerged in the 90s!

You CAN buy the iphone here without sim locks now. Just go to the Apple Stores and buy it there. Before you all rush out and look for it though, be aware that suddenly you are buying the phone with ZERO phone company kickbacks. So instead of being 65k, and getting monthly rebates to cover the monthly repayment plans, you will need to pay close to 100k for a 64gb 5S iphone. Then when you go to the phone companies, SB/DCM/AU will still charge you 8k per month for voice and data. Over 2 years your total outlay would be far more than if you had just bought one of the locked versions. But hey its unlocked!

After reading this article it seems that enforcing the sim unlocking and other 'fair play' options will end up being more expensive for the consumer. The current MNP deals and cashback offers make it quite affordable to have a phone here; not looking forward to having to pay more!

This will create havoc for phone companies. At present, they do not itemize bills and have many 'hidden' fees in your total bill. I always request an itemized bill from Softbank, which they charge me for. I've found quite a few discrepancies over the the years. This move will deregulate the whole mobile phone industry in Japan, and open it up to a much more free trade. No wonder the telcos are scared. To quote a famous Australian politician, "This will keep the bastards honest!" It will create a lot more open competition and freedom for the consumer. You'll be able to buy a phone at Softbank cos the phone is cheaper and then go across the road to AU and join their data plan cos it is cheaper. It's a win win situation for the consumer. I'd also conclude that this will also allow you to use your phone overseas without incurring huge bills. You should just be able to drop a pre-paid SIM into your phone and use it as normal overseas cos it is not locked to one carrier.

Mudassar KhanJul. 23, 2014 - 09:18AM JST

I being a foreigner is very happy to hear about this. Also they should remove machine lock, so that it can be used in any country of the world. If a consumer like me pays all the cost of machine, why not he should be allowed the property rights and freedom of usage in anywhere else in the world.. Government should also think and act on it.

I totally agree!

Where I come from, prepaid mobile SIM cards are sold in kiosks and if you have a carrier-locked phone, kids will laugh at you.

If you DO sign a contract, your data rate will be flat and calls free (within a limit). You'll pay the equivalent of ¥2000~¥4000 monthly for 2 years (LTE data, device included). You can cancel if you like and the other carrier will let you keep your number.

I will be happy when I can use my Softbank Iphone freely and at the same rate WHITE PLAN in the USA as in Japan!!

When land lines are no longer supported I just won't have a phone any more. Mobiles are turning the human race into self-absorbed zombies. They're handy devices to let you show your contempt and total lack of manners and consideration to others. And they're also killing young drivers who are addicted to texting at an impressive rate.

"The irony is that Japan is a major supplier of the chips used in the Iphone..."

I don't know where you got your info from, but the CPU is made by Taiwan Semiconductor, while it was previously made by Samsung.

Renessa, a Japanese chip supplier for the display, is in dire financial straits.

Only iPhone is targeted? I guess that means that Android isn't much of treat to the Galakei dinosaurs. Coming to think of it... Is really anyone today still buying a Galakei?

I have a Galakei, PHS. Japanese only. Has 6 apps: phone, calculator, alarm, calendar, notes and party tab split calculator. No camera. I can't remember when I charged the battery.

Disillusioned, those itemized bills do not matter anymore; DCM and SB have both moved to a free calls plan - you pay 3000yen for unlimited calls. If you dont want to pay for the unlimited calls plan, you have no choice but to have a data-only sim card (so you cant have a phone number for incoming/emergencies).

I have said it time and time again, but the current system really isnt that bad. If you play the providers against each other then the switching ("Norikae") discounts can give you free phones and sub-4000yen monthly bills. Phones might be locked, but these days it is really not that hard to find a cheap unlocked phone to use for overseas trips

Afano, are you too lazy to write DOCOMO?? Why do you insist on writing DCM as if anybody in Japan could understand what you mean, write DOCOMO!! Is it that difficult to write and SB, ok it could be Santa Barbara but is it also that difficult to write SOFT BANK!! Geez!! Anyway, Iphones are cool but they are still too overpriced but I would rather have an Iphone than some crap Android Galaxy etc..

this will spell the end of zero yen iphones from Softbank (sorry I don't know what price other carriers charge), but all for the better I think. It will also make travelling easier due to the ability to just swap out the sim for a local one.

From what I hear, what the Ministry of Internal Affairs and Communications says, goes. So I expect the carriers will push ahead with the changes without forcing the Govt to legislate it. Hopefully we see it before the end of the year :)

I like the current system where there are incentives for switching via MNP. It rewards the people that actually think about their purchase.

I don't need my phone to be able to work on every network, as I can just get a new one for 0 yen when I switch, and sell the old one to cover the extra fees if it is new enough. Normally my Docomo plan would cost around 7000 yen but I'm paying only 2000 yen a month for 2 years because of the MNP discounts and "monthly support" that pays for the phone (but the phone was 0 yen, so it just subtracts from my monthly bill).

To put it another way, these regulations would make it easier to switch networks, but it would cost a lot more to buy the phone and/or take away all the other discounts and benefits from changing providers. Too much regulation is definitely not a good thing.

We don't need the gov't to curb iPhone influence, Google is taking care of that.

Elbuda, this is Japan, and we are talking about phones. There are only 3 major phone companies here. Anyone living here would recognise them as DCM (Docomo's stock exchange ticker), SB and AU.

Therougou knows whats up. Even iphones can be bought with serious discounts on the MNP incentives, but it requires shopping around. Surprisingly even very few Japanese people know about it though. That reminds me though, i really need to do another norikae (Elbuda, that means switch over, or change), before we are forced onto the new, more expensive plans with less data... ugh.

That reminds me though, i really need to do another norikae (Elbuda, that means switch over, or change), before we are forced onto the new, more expensive plans with less data... ugh.

Yeh, be careful though, because the best deals now will require that you sign up for the new plan.

New iPhone is in another month or so (Sept)= stay away from any of these contracts for now. If anything get the 5s with the A7 64bit chip. Need iPhone 4s or greater for iOs8.